Continuing from where we left off last night:
Watching oil move tonight, just has to be more interesting than the speech:
- WTI: up 5.01%; up $5.18; trading at 108.68.
- Brent: up 5.23%; up $5.49; trading at 110.46.
Now, this morning:
- WTI: up 7%; up $7.16; trading at 110.57.
- Brent: up 7%; up $7.35; trading at 112.32.
Holy mackerel: just minutes later --
- WTI: up 8.5%; up $8.74; trading at 112.15.
- Brent: up 8.4%; up $8.79; trading at 113.76.
Why so much this morning (oil)? Apparently traders not happy with Biden's SOTU address and a paltry 30 million bbls from the US SPR -- 30 / 100 = 03 = 7.2 hours of global demand.
Agree 100%, from social media: the price of oil is moving up so quickly, equity share price appreciation cannot keep up. "Everybody" wondering how this will play out. Sure, six months to a year from now, prices may be "back to normal," but in the meantime, two quarters of incredible financial reports.
PEMEX: how do they do it? Posts another $6 billion 4Q21 loss vs a profit one year ago. Link here. Can anyone make sense of this: their revenue almost doubled, and yet they lost money. Wow, that must be hard to do.Apparently due to currency exchange losses and higher taxes -- say what?
Doomberg: disappointed. I really like Doomberg but not enough to subscribe. Doomberg announces it will convert to a "pay format" in two months. Nice knowing you. Mucho gusto. Hasta luego.
Nord Stream 2: bag holders -- this came from a reader -- apparently hard to find -- I had not thought of looking this up; explains why it took so long for western world to go "negative" on this project -- look at the western companies involved -- wow, what a story! I understand the "project" will seek bankruptcy protection.
Gazprom paid half the cost of building Nord Stream 2, with the remainder of the $11 billion pipeline project financed by British oil and gas major Shell, Austria's OMV, France's Engie and Germany's Uniper, and Wintershall DEA.
Nord Stream 2: has fired the entire staff. Link here.
The Swiss-based company building the Nord Stream 2 gas pipeline from Russia to Germany has fired all 106 staff after being targeted US sanctions.
The German government moved to halt approval for the $11bn (£8.2bn) pipeline last week before President Joe Biden then directed his administration to impose sanctions on the operating company.
In a further blow, major backer Shell announced it would pull out of the project.
The Gazprom-owned company denied reports it had filed for bankruptcy.
XOM: to exit Russia at a cost of $4 billion? Link to first couple of paragraphs.
And then they wonder why their gasoline is so expensive. California:
- MPC to convert Martinez refinery to renewable fuels project;
- Finnish Neste says to become first global renewable fuels producer.
Mixed messages from Canada:
- says it won't import oil from Russia;
- apparently hasn't imported "crude oil" from Russia since 2019; but,
- continues to import "petroleum productions" from Russia; link here.
- other articles corroborate the story but behind paywalls.
********************************
Back to the Bakken
WTi: $109 or thereabouts. Remember, these guys are making money on $30-oil.
Active rigs:
| $108.96 | 3/2/2022 | 03/02/2021 | 03/02/2020 | 03/02/2019 | 03/02/2018 |
|---|---|---|---|---|---|
| Active Rigs | 32 | 14 | 53 | 67 | 59 |
Wednesday, March 2, 2022: 2 for the month, 110 for the quarter, 110 for the year
- 38063, conf, Hess,GO-Soiine A-156-97-2932H-2, Dollar Joe; a very nice well; 46K first month (unknown number of days of production; see below.
RBN Energy: a steeper path to gas-project certification following new FERC policies.
It ain’t easy being a midstreamer lately. Well, it’s probably never been easy, but these days trying to get a pipeline project to the finish line might feel a bit like Sisyphus from Greek mythology, forever pushing a boulder up a hill, filled with obstacles and setbacks. That hill has leaned ever-steeper in the past several years as turnover among FERC’s commissioners delayed project reviews, courts reversed a number of FERC approvals, and public opposition to pipeline projects increasingly delayed progress, even resulting in cancelations. And two weeks ago, the approval process was made tougher still when FERC announced new statements of policy regarding project certifications and greenhouse gas impact assessments. The proposed changes have caused a lot of anxiety among midstream companies, although in many ways FERC just declared as policy what was already happening on a case-by-case basis. But midstreamers shouldn’t panic. In today’s RBN blog, we explain the commission’s new guidance and how much impact it will really have.
*********************
38063
| Date | Oil Runs | MCF Sold |
|---|---|---|
| 1-2022 | 12823 | 0 |
| 12-2021 | 18314 | 55867 |
| 11-2021 | 26311 | 63474 |
| 10-2021 | 29167 | 63827 |
| 9-2021 | 46149 | 49745 |
As stated, 6 months from now oil will be back to normal, whatever normal is.
ReplyDeleteIn the meantime, I will be loading up my savings account, stuffing the mattress, and burying coffee cans of the windfall profits in my backyard.
What I will not be doing is buying the boat I have always wanted. Maybe invest a bit of it.
Point is this too shall pass and it is imperative to be prepared for $30 oil.
We'll post this for the archives: $30 oil.
DeleteYou are in good company: Cathie Wood says the same thing, though some folks say oil will get back to $12.